Consumer Protection Code: A Step Forward?

The Consumer Protection Code, updated since 2012, will be revised again in 2025. Consumer advocate Brendan Burgess believes the new code doesn’t do enough to promote mortgage switching or eliminate high interest rates and cashback deals. Karl Deeter, CEO of OnlineApplication, agrees, emphasizing that mortgage deals need to be clearer and easier to compare. He advocates for more transparency to help consumers avoid hidden costs.

The Challenges of Mortgage Switching

Despite efforts to digitalize the process, mortgage switching in Ireland remains a challenge due to customer inertia. Many homeowners don’t switch mortgages, even though they could save significant amounts of money. Deeter points out that the process still feels daunting, despite digital solutions like ours at OnlineApplication making it simpler.

Independent Advice: A Missing Link

Deeter also highlighted the importance of independent mortgage advice, which is often overlooked. While banks inform consumers when their fixed-rate mortgages are ending, they primarily promote their own products.

Avant Money’s Innovative Mortgage Product

Avant Money recently launched a new mortgage option based on the European Interbank Offered Rate (IBOR), which provides more transparency compared to traditional variable rates. While there are still risks, this product represents a positive shift toward clearer and more competitive mortgage options.

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The mortgage landscape is evolving, and while the Central Bank’s updated Consumer Protection Code is a step in the right direction, more can be done to simplify mortgage switching and protect consumers. Avant Money’s innovative mortgage offering adds a new dimension to the market, providing more choices for consumers. At OnlineApplication, we’re committed to making the mortgage process easier, faster, and more accessible for everyone.

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Listen to the podcast here: https://www.spiritradio.ie/podcast/latest-mortgage-news-in-ireland-karl-deeter/

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